Learn And Understand The Taxation And Tax Requirements In Colombia
In Colombia, Accounting tax is one of the factor that is being considered when a company is moving into a new target market. Company also consider these Tax requirements in Colombia such as company tax rate, value added tax rates and double taxation relief. In addition, Country’s framework for financial reporting is needed to be understood: does it applies the accounting standard or the International Financial Reporting permitted?
Companies that is created in Colombia provides an upward movement to dissimilar tax treatments, frequencies of the declaration of taxes, and requires pension and health contributions. This article gives a summary of the Tax requirements in Colombia, taxation and Colombia’s accounting regulations.
Corporate Tax and Accounting Requirements in Colombia
Taxes is what most people thought of when talking about accountants. You need to understand Colombian tax law whether you are a Colombian individual or a managerial who is managing multinational to protect your interests and to know what are the Tax requirements in Colombia.
NIFF / IFRS in Colombia
In Normas Internacionales de Información Financiera, full compliance is needed also known as International Financial Reporting Standard. Ask an accountant in Colombia if they are certified in this process. Fines will be fill up to $200 USD minimum salaries and always make sure to take the steps critically. For maximum fines, that emerges to $45,000 USD and that is considered as an inflated price of the US dollar.
Double Taxation
One of the Tax requirements in Colombia is not permitted under Colombian Law. In Colombia, the calculations and Tax deductions is dissimilar with other countries. Various Colombian accounting and legal firms interpreted differently the argument on enabling US deductions for profit in the USA. Professionals should study each persons and companies circumstances before drawing any solution. Several times, The difference of percentages of taxes is not paid in one country but it must be paid in another country.
Reporting Requirements
Agencies issue rules and statements on accounting principles such as The Superintendency of Corporations, Securities, Banks, the Tax and Customs Administration, and other Colombian government. Colombian generally accepted accounting principles or GAAP are hold command. In Colombia, Financial statements are produced for any entity that involved income generator activities but still needs to follow the GAAP. Irrespective of Tax requirements in Colombia, The Financial statements will be looked forward to provide an accurate and a certain perspective of the monetary level of the entity.
The accounting documents have to be preserve in Colombian pesos and in Spanish, Under the Law of Corporate of Colombian. By using the percentage of adjustment for the fiscal year: a variation of the Consumer Price Index, Face values of nonmonetary assets, non-monetary liabilities, and net worth also must be regulated for inflation and devaluation.
According to Medellin Living “Joint stock corporations that list their shares on the stock exchange or issue liabilities, as well as all business entities that operate in the financial sector, must publish their annual financial statements in a local newspaper”.
